Ambuja forecasts India's cement demand growth to slow to about 5% in FY2027
2026-06-30 10:32
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en.Wedoany.com Reported - Ambuja Cements released its annual report, forecasting that India's cement demand may slow to about 5% in FY2027, down from an estimated growth rate of 6.5% to 7.5% in FY2026, marking a shift toward a more stable expansion pace for the industry after several years of strong growth.

The report analyzes that underlying demand drivers such as housing, infrastructure development, urbanization, and government capital expenditure remain solid, which is expected to support cement consumption across regions. Global geopolitical uncertainties and weather risks, including below-normal monsoon forecasts, may impact short-term demand, but India's long-term infrastructure story still provides a solid foundation for the industry.

Industry observers note that after strong performance in recent years, the sector may shift to mid-single-digit growth rates in FY2027. The company outlined a calibrated expansion strategy, with capacity increases phased in to align with project pipelines, regional demand patterns, and market absorption, aiming to avoid oversupply and price pressure.

Through acquisitions and organic expansion, Ambuja has surpassed the milestone of 100 million tons per year, consolidating its position in a competitive market. The outlook in the report is broadly consistent with other market assessments, which expect demand of about 5% in FY2025, recovering to 6.5% to 7.5% in FY2026, and slowing in FY2027 due to capacity additions. Executives remain focused on long-term demand fundamentals driven by infrastructure and housing.

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